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July 10, 2023

• *India Special Situations: Demerger: #Reliance Industries (RIL IN) to demerge #Jio Financial Services (JFSL)* _(Record date: 20-July-2023)_
• Thursday, *20-July-2023* _(19th-July-2023 will be the last day to get benefit of demerger)_ has been fixed as the *Record Date* for the purpose of determining the equity shareholders of the company entitled to receive the resulting company new equity shares.
• *F&O Impact:* F&O contracts are likely to *expire on 19th July.*
• *Index impact:*
• *NIFTY*: On the back of amendment in rules relating to demerger, spun-off business *_(new entity)_ will be included in the index at a constant price* _(difference between price of the company undergoing demerger on day prior to the ex-date and its discovered price in the pre-open session on Ex-date)._ Spun off business shall be *removed from the index after end of day (EOD) on third day of its listing* _(subject to certain price conditions)._
• *MSCI:* Basis our evaluation of current pro-forma market cap of JFSL, it is likely to be *retained in the Standard index* as a detached unit _(will be dependent on price action)._
• *FTSE:* FTSE GEIS follows a practice of deleting the unlisted unit if trading does not commence within 20 business days from the ex-date. *As the scale of this demerger is pretty big, we don’t rule out a fast tracked listing.*
• *SENSEX:* Sensex indices remove the company undergoing demerger a week before it goes ex. *However we don’t rule out an amendment in this case.*
• Quarterly Results Calender
• 12th Jul - HCLTECH, TCS
• 13th Jul - FEDERALBNK, WIPRO
• 14th Jul - BANDHANBNK
• 17th Jul - LTIM
• 18th Jul - ICICIGI, ICICIPRULI, LTTS, POLYCAB
• 19th Jul - CANFINHOME, L&TFH
• 20th Jul - COFORGE, HINDUNILVR, INFY, MPHASIS, PERSISTENT
• 21st Jul - ATUL, HDFCLIFE, JSWSTEEL, ULTRACEMCO
• 22nd Jul - AUBANK, ICICIBANK, KOTAKBANK
• 24th Jul - HDFCAMC
• 25th Jul - ASIANPAINT, BAJAJAUTO, JUBLFOOD, SBILIFE, TATAMOTORS
• 26th Jul - BAJFINANCE, CIPLA, DRREDDY, SHREECEM, TATACONSUM, TECHM
• 27th Jul - BAJAJFINSV, INDUSTOWER, NESTLEIND
• 28th Jul - EXIDEIND, M&MFIN, MARICO
• 31st Jul - BOSCHLTD
• Quarterly Results Calender
• 1st Aug - CHOLAFIN
• 3rd Aug - DABUR
• 4th Aug - RAIN
• 8th Aug - HINDALCO
• 9th Aug - MFSL
• 11th Aug - ABB
• 12th Aug - AMARAJABAT
• _*NSDL IPO* - 389 Pages DRHP is Really Worth Reading if Time Allows You to do so_ .
• *If Time doesn't allow then here is All Important Summary from 389 Pages *
• Name of CDSL Appears 122 Times in DRHP & Why it Shouldn't as it is the Only Available Peer.
• *Now let's talk Every Important Aspects Pointwise.:*
• Point I - Shareholding Pattern
• • NSDL is a No Promoter Company & as on DRHP Date, There are 76 Public Shareholders
• •• Top 12 Shareholders hold 93.33% Stake in the Company
• ••• _Out of These 12, Half the Number is Reducing their Stake while half to remain as it is_
• Point II - Listing Deadline
• • SEBI's In Principle Approval Require it to list before 13, April, 2024
• •• Company's Principal Shareholders IDBI Bank & NSE are Required to Dilute their Stake in NSDL on or Before Gandhi Jayanti i.e 2nd October, 2023
• *Point III - Company's Segmental Growth & Degrowth*
• • Depository Revenue dropped from 71.77% of Total Revenue in 2021 to 40.03% in 2023
• •• Revenue from Banking Services Jumped from 13.59% of Total Revenue in 2021 to 52.91% in 2023
• ••• Database Management Revenue Dropped from 14.64% in 2021 to 7.06% in 2023
• *Point IV - Most Interesting NSDL v/s CDSL as on 31 March, 2023*
• • NSDL Number of Demats 3.15 Crore while CDSL 8.30 Crore
• •• NSDL Revenue 1,099.81 Crore While CDSL Revenue 620.94 Crore
• ••• NSDL PAT of 234.81 Crore v/s CDSL PAT 275.96 Crore
• •••• NSDL EPS 11.74 Per Share v/s CDSL EPS 26.41
• Point V - Few Interesting Points
• • T+2 Settlement was Started in 2003 & T+1 Settlement Started in 2023, Twenty Long Years
• •• *Equity Investment in India is just 1.90% of Overall Household Financial Assets, Long way to Go*
• ••• *As on 31 March, 2023 Total Unlisted Companies at NSDL is 31,245 while 12,623 at CDSL*
• •••• *Total Number of Demats Expected to reach 18 Crore in FY 2027 from 11.45 Crore in FY 2023*
• *One Area where NSDL has big Edge over CDSL is FIIs, 99.99% of FII Holding is through NSDL*
• Note : All Figures are taken from NSDL DRHP Filed on 7th July, Some Typing Error Possible
• 1). Sectors to outperform – *AUTO, ENERGY, DEFENSE and PSUBANK*
• 2). Stocks which will outperform – *M&M, TATAMTR, JBM AUTO, OLECTRAGREEN, TATAMTR DVR, JAMANAAUTO, RIL, HPCL, HAL, MAZDOCK, CANBK, BOB, PNB, UNIONBK, SBIN and INDIANBK*
• 3). Individual Stocks which can outperform – *BSE, CHALET HOTEL, DEEPAK FERT, ENGG. INDIA, FORTIS, ZEE, HINDZINC, JSTAINLESS, KAYLYAN JEWELLERS and SJVN*
• *India Daybook – Stocks in News*
• *Aurobindo Pharma:* Company gets exclusive rights for BioFactura's monoclonal antibody ustekinumab biosimilar (Positive)
• *Zydus Life:* US FDA concludes pre-approval inspection with Zero observations for Ahmadabad-based formulation manufacturing facility at SEZ 2 (Positive)
• *Gland Pharma:* Company gets USFDA nod for Fomepizole’s Abbreviated New Drug Application (Positive)
• *RVNL:* Company emerges as lowest bidder for a NHAI project worth Rs 808.48 cr (Positive)
• *HAL:* Ministry of Defence & HAL sign Rs 458 cr deal for two upgraded Dornier aircraft for Indian Coast Guard (Positive)
• *Samvardhana Motherson:* To acquire Rollon Hydraulics for an equity value of Rs 103 cr (Positive)
• *TVS Motor:* Company launched ‘Modern-Retro’ motorcycle in Indonesia (Positive)
• *Sula Vineyards:* Company has recorded its highest ever Q1 net revenues overall as well as for Own Brands. (Positive)
• *Reliance Industries:* Company sets July 20 as record date for Reliance Strategic Investments demerger (Positive)
• *Prism Johnson:* Company to transfer limestone land parcels, mining lease in Andhra Pradesh to Ramco Cements (Positive)
• *IRB Infra:* June toll revenue up 16.5% at Rs 383.3 cr vs Rs 329.1 cr (YoY) (Positive)
• *Oil upstream stocks:* Oil prices climb to the highest in two months outweighing Fed rate hike (Positive)
• *Max Ventures:* Max Estates'' first luxury residential project in NCR garners pre-formal launch sales of INR 1,800+ crores (Positive)
• *Usha Martin:* SOCIETE GENERALE bought 16,59,466 shares at Rs 279.99/ share (Positive)
• *IOC:*Board approves raising capital of up to Rs 22,000 crore via rights issue (Neutral)
• *HDFC Bank:* Bank to replace HDFC Ltd on MSCI indexes. (Neutral)
• *Reliance Industries:* Reliance Retail board approves equity capital reduction plan shares valued at Rs 1,362 apiece (Neutral)
• *Vedanta:* Board approves acquisition of Vedanta Foxconn Semiconductors & Vedanta Displays (Neutral)
• *Hindustan Zinc:* Company declares an interim dividend of Rs 7 per share (Neutral)
• *Tata Motors:* Group global wholesales at 3,22,159 in Q1 FY24 (Neutral)
• *Hindustan Zinc:* Company declares interim dividend of Rs 7 per share (Neutral)
• *Adani Ent:* Company has completed acquisition of 29.81% stake of Stark Enterprise (Neutral)
• *Spice Jet:* To Consider Raising Capital Via Equity And/Or Convertible Securities On Preferential Basis (Neutral)
• *HDFC:* All existing F&O monthly and weekly contracts in the underlying HDFC contracts with expiry dates post July 12, 2023, shall expire on July 12, 2023 (Neutral)
• *Som Distilleries:* Board approves fund raising through the issue of convertible equity warrants to promoters (Neutral)
• *Suzlon:* Board has approved a proposal to raise up to Rs 2,000 crore (Neutral)
• *Zee Ent:* NCLT hearing in the Zee-Sony Merger case set to resume (Neutral)